Sainsbury’s has posted its 13th consecutive quarter of like-for-like growth and created a £1.2 billion joint venture to develop and improve stores.

The grocer generated comparable store sales growth – excluding petrol – of 4.1 per cent in the fourth quarter, bringing its full-year like-for-like increase to 3.9 per cent.

Sainsbury’s chief executive Justin King said it has enjoyed£2.7 billion of sales growth since March 2005 and has hit growth targets ahead of plan. He warned that shoppers “are facing real increases in their cost of living”, but believed Sainsbury’s was well-positioned to “meet the demands of a challenging environment”.

King also unveiled a 50:50 joint venture with British Land, in which the grocer is investing£273 million. The deal covers 39 stores – valued at£1.2 billion – and up to 25 of the premises are to be extended.

King said: “This venture is an excellent opportunity for Sainsbury’s to increase our interest in the future extension and development of many of our most important stores. This will enable us to enhance the customer offer, increasing both the trading and property value of these assets.”

Separately, Sainsbury’s is to sell 36 Bells and Jackson’s convenience stores, which are unsuitable for conversion to the Sainsbury’s fascia.

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